Puerto Rico board survives hedge fund's constitutional challenge

Hedge fund Aurelius Capital Management on Friday lost its long-running fight to have Puerto Rico’s bankruptcylike restructuring case dismissed by challenging the constitutionality of the federal board appointed to oversee the U.S. territory’s finances.

U.S. District Court Judge Laura Taylor Swain in a 35-page opinion held Congress was acting within its powers when it appointed the Financial Oversight and Management Board (FOMB) as part of the 2016 law known as PROMESA, which gives Puerto Rico a way to reorganize its finances.

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